SOLUTION Found! Finally broke down and called progressive dynamics. After questioning the tech for 20 minutes I finally got the secret out of him. This is nowhere mentioned in the installation guide, there's no illustrations of this, not even a hint to someone who is not a professional electrician. The secret that is nowhere mentioned in any of the their literature is... You need to install an additional circuit breaker that jumps to the hot bus. With out that installed the AC all functions, the DC all functions, but the AC will not run the DC. With that circuit breaker and jump everything works including the converter charging the battery beautifuly. And we were right about the DC negative, run everything to the terminal out going to the negative battery.